WAKE UP: Debt Relief Companies Aren't Prince Charming

If you're drowning in debt, chances are you're desperate enough to try anything.

That includes so-called "Debt Relief" services.

These bogus businesses hit radio airwaves and late-night infomercials to pose as knights in shining armor for consumers reaching the end of their money rope.

Don't worry, they say, pledging to slay the Big Bad Wolf (i.e.: your creditors) and help you live Happily Ever After - for a fee.

Here's a wake up call: This is a probably a lie.

The Federal Trade Commission just revamped regulations surrounding debt relief services, making it more difficult for them to dupe unwitting consumers into forking over cash for services they have no intention of rendering.

But it's still all-too possible to get tricked, so here are some red flags to look for:

Upfront fees. By law, debt relief companies can't collect fees until you've gotten what you intend to pay for. If they try to feed you a line of bull about down payments or holding fees, don't stick around to hear the rest of their sales pitch.

Shady timelines. The firm has to tell you how long you'll have to wait to see results, according to the FTC. If they're playing coy, they're probably up to something fishy.

Unclear pay scale. They're required by law to tell you how much their services cost upfront.

Fairytales. If they're painting a rosy picture of all the magical benefits you'll glean from their service without telling you the potential negative side effects, they're in the wrong. The new FTC rule makes it illegal to tell you the pros without the cons.